CHALLENGES FACING THE IMPLEMENTATION OF STRATEGIES
ADOPTED BY THE CITY COUNCIL OF NAIROBI FOR EFFECTIVE
REVENUE COLLECTION
BY
LORRAINE KAGEHA MUGASIA
A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF
BUSINESS ADMINISTRATION DEGREE, SCHOOL OF BUSINESS,
UNIVERSITY OF NAIROBI
NOVEMBER, 2012
ii
Declaration
I declare that this is my original work and has not been presented in any other University
or College for Examination or Academic purposes.
Signature: ______________________ Date: _____________
Student: LORRAINE KAGEHA MUGASIA
REG NO: D61/75288/2009
This project has been submitted for examination with my approval as the university
supervisor.
Signature: ___________ Date: ______________
SUPERVISOR: DR. ZACHARY AWINO, PhD.
Senior Lecturer,
School Of Business Administration,
University Of Nairobi
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Dedication
This project is dedicated to my husband, Ochieng Dancun and my lovely sons, Andy and
Adam Duncan.
iv
Acknowledgments
It has been an exciting and instructive study period in the University of Nairobi and I feel
privileged to have had the opportunity to carry out this study as demonstration of
knowledge gained during the entire period I have studied for my master’s degree. With
these acknowledgments, it would be impossible to remember those who in one way or
another, directly or indirectly, have played a role in the realization of this research
project. Let me, therefore, thank them all equally.
First, I am indebted to the all-powerful God for all the blessings He showered upon me
and for being with me throughout the study. I am deeply obliged to my supervisor for his
exemplary guidance, patience and support without whose help; this project would not
have been a success. Finally, yet importantly, I take this opportunity to express my deep
gratitude to the lasting memory of my loving family and friends who are a constant
source of motivation and for their never ending support and encouragement during the
project period.
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TABLE OF CONTENTS
Declaration...................................................................................................................... ii
Dedication ...................................................................................................................... iii
Acknowledgments ......................................................................................................... iv
Abstract ........................................................................................................................ viii
CHAPTER ONE:INTRODUCTION ............................................................................1
1.1 Background of the Study ........................................................................................1
1.1.1 Strategy Implementation ..................................................................................2
1.1.2 Challenges Facing Strategy Implementation ...................................................3
1.1.3 Local Government Authorities in Kenya .........................................................5
1.1.4 The Nairobi City Council.................................................................................6
1.2 Research Problem .................................................................................................10
1.3 Research Objectives …. ........................................................................................12
1.4 Value of the Study ................................................................................................12
CHAPTER TWO:LITERATURE REVIEW .............................................................13
2.1 Introduction ...........................................................................................................13
2.2 Theoretical Review of Strategy Implementation ..................................................13
2.3 Empirical Review.................................................................................................15
2.4 Strategy Implementation Process ..........................................................................16
2.5 Factors Affecting Strategy Implementation ..........................................................28
2.5.1 Commitment of Top Management ............................................................29
2.5.2 Involvement of Middle Manager’s Valuable Knowledge ........................29
2.5.3 The Role of Communication .....................................................................30
2.5.4 Integrative Point of View ..........................................................................31
2.5.5 Clear Assignment of Responsibilities .......................................................32
2.5.6 Preventive Measures Against Change Barriers .........................................33
2.5.7 Teamwork .................................................................................................33
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2.5.8 Individuals’ Differences............................................................................34
2.5.9 Supportive Implementation Instruments ...................................................35
2.5.10 Buffer Time for Unexpected Incidents .....................................................36
2.5 Challenges Facing Strategy Implementation in Organizations .........................…37
CHAPTER THREE:RESEARCH METHODOLOGY ............................................40
3.1 Introduction ...........................................................................................................40
3.2 Research Design....................................................................................................40
3.3 Target Population and Sample Size……………………………………………...41
3.4 Data Collection Method ........................................................................................41
3.5 Data Analysis ........................................................................................................42
CHAPTER FOUR:DATA ANALYSIS, RESULT AND DISCUSSIONS ...............43
4.1 Introduction ...........................................................................................................43
4.2 Response Rate .......................................................................................................43
4.3 The Role of the Managers in Strategies Implementation Process ........................44
4.4 Cchallenges Affecting the Iimplementation Process in the Council ....................45
4.5 Factors that pose Challenge to Strategy Implementation Process Services ..........46
4.6 How Strategy Implementation Challenges Affect The Implementation...............47
4.7 Basic Measures Requirements in the Council for Effective Strategy. ..................49
4.8 Requirements in the Council for Effective Strategy Implementation.. .................49
4.9 Discussion of the Results………………………………………………………..50
CHAPTER FIVE:SUMMARY,CONCLUSIONS AND RECOMMENDATIONS.53
5.1 Introduction ...........................................................................................................53
5.2 Summary of the Results ........................................................................................53
5.3 Conclusion ............................................................................................................57
5.4 Recommendations .................................................................................................57
5.5 Limitation of the Study .........................................................................................58
5.6 Suggestions for Further Research .........................................................................59
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5.7 Implication on Theory, Policy and Practice…...……………………………..….58
REFERENCES .............................................................................................................60
APPENDICES ..............................................................................................................71
APPENDIX I: Cover Letter ....................................................................................71
APPENDIX II: Interview Guide.............................................................................72
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Abstract
Much of the previous research into the challenges to strategy implementation mechanism
has concentrated generally on developed countries. Not much known local study has
focused on the challenges facing the implementation of strategies adopted by local
authorities in Kenya. This study therefore sought to fill the existing research gap by
carrying out a case study on the challenges facing the implementation of strategies
adopted by the city council of Nairobi for effective revenue collection. This research was
conducted through a case study. The target population of this study was the managerial
staff working in the city council of Nairobi. This paper utilized an interview guide used in
various previous research projects. This study collected qualitative data using a self-
administered interview guide. The response received was analyzed by content analysis.
From the findings, the study established from most respondents that the challenges facing
the implementation of strategies adopted by the city council of Nairobi for effective
revenue collection are better resolved for performance to improve to a very great extent.
The study further established that most of the respondents were in agreement that the
challenges facing the implementation of strategies adopted by the city council of Nairobi
for effective revenue collection is a comprehensive important measurement and there
needs to be mitigation methods to be used for various organizations hence much
important if strategy is effectively implemented and utilized. This study therefore
recommends that in order to avoid many impediments, the city council of Nairobi should
make sure that its strategy implementation is sufficient to enable administration, credit
and financial management.
1
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Implementation of strategies is concerned with putting strategy into practice. It is
described by Giles (1991) as the execution of tactics both internally and externally so that
the organization moves in the desired strategic direction. The word strategy has entered
the field of management quite recently (Eisenstat, 1993). At first the word was used in
military science to mean what a manager does to offset actual or potential actions of
competitors. A few people still use the word in the same sense (Andrews, 1971).
The word strategy was derived from Greek “Strategos’, which means generalship
(Ansoff, 1999). Strategy therefore means the art of the General. In management, the word
strategy is taken more broadly. However, various experts do not agree on the precise
scope of strategy (Fuerer, 1997). There are as many definitions of strategy as there are the
experts. Lack of unanimity has resulted in two broad categories of definitions; strategy as
action inclusive of objective setting and strategy as action exclusive of objective setting,
Rai University (2007).
Johnson and Scholes (2002) give the most basic definition of strategy as the long term
direction of an organization and the types of actions required to achieve the objectives
They also define it as the direction and scope of an organization over the long term which
achieves advantage for the organization through its configuration of resources within a
changing environment and to fulfill the stakeholders’ expectations. In 1965, Professor
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Ansoff a well-known authority in the field of strategic management defined strategy as
the common thread among the organizations activities and product markets, that defines
the essential nature of business that the organization was planned to be in future. Ansoff
and MacDonell (1990) on the other hand defined strategy as a unified, comprehensive
and integrated plan designed to assure that the basic objectives of the enterprise are
achieved.
The three adjectives that Ansoff used make the definition quite adequate. ‘Unified’
means that the plan joins all parts of an enterprise together; ‘comprehensive’ means it
covers all the major aspects of the enterprise, and ‘integrated’ means that all the parts of
the plan are compatible with each other, (Rai University 2007).
1.1.1 Strategy Implementation
Strategy implementation requires an integrative point of view. Not only the
organizational structure, but cultural aspects and the human resources perspective are to
be considered as well. An implementation effort is ideally a boundary less set of activities
and does not concentrate on implications of only one component, e.g. the organizational
structure (Rapa and Kauffman, 2005).
It is of great importance to integrate soft facts as well in the reflection of the
implementation process. It is the consideration of soft and hard facts together that
ascertains that cultural aspects and human resources receive at least the same status as
organizational aspects. Altogether, such an integrative interpretation allows an important
scope of development for implementation activities (Rapa and Kauffman, 2005).
3
According to Ansoff and MacDonnell (1990), Strategy is a set of decision-making rules
for guidance of organization behaviour. They further argue that strategy is illustrative and
somewhat abstract concept. Its formulation typically produces no immediate productive
action in a firm. It is an expensive process both in terms of money and managerial time.
Paul (1996) opines that the core of general management is strategy, which he elaborates
as “developing and communicating the council’s unique position, making trade-offs and
forging fit among activities, (Rai University 2007).
Municipal revenue is about the revenue decisions of municipal government. Revenue is
income that a municipal government receives from its normal business activities, usually
from the sale of goods and services to customers (Goold, 1991). The sources of revenue
for municipal government vary across countries but generally includes taxes, users fees,
fines, licenses/permits, rent, investments, access and miscellaneous. It may also include
borrowings, changes in developers and public private partnership.
1.1.2 Challenges Facing Strategy Implementation
According to Lippitti (2007), when strategy fails to achieve expected results it is often
because the strategy execution was flawed. The failure to execute is a major concern of
executives because it limits organizational growth, adaptability, and competitiveness.
Executives are not judged by the brilliance of their strategy, but by their ability to
implement it (Goold, 1990). The challenge is how to close the gap between strategy and
actual results. (Lippitti, 2007).
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Lepsinger (2006) similarly argues that true leaders have a clear vision and are 100%
committed to pursuing it but something often goes wrong as the leaders try to bring their
vision to life. He calls this the “strategy-execution gap”. Pryor I, et al (2007), stated that
without coherent, aligned implementation, even the most superior strategy is useless.
Unfortunately, most strategic planning efforts fail during this crucial phase wasting
significant resources already invested.
Strategy process has been characterized as being highly complex, politically laden,
affecting large parts of an organization and driven by the upper level managers, Hamel &
Prahalad (1994). Lippitti (2007) argues that in the rush to act on strategy, too little
attention is paid to finding the best implementation initiatives. Shortcuts such as
repackaging existing projects which appear to support the new strategy, cannot work
because while strategic plans can be copied, execution cannot be duplicated (Hill, 2001).
Execution must address the intangibles of cross functional integration, reward systems,
and cultures as well as the tangibles captured in most planning documents. For many
firms, false starts, delays and confusion characterize implementation. According to
Pearce and Robinson (2003), an organizational structure is the division of tasks for
efficiency and clarity of purpose, and coordination between interdependent parts of the
organization to ensure organizational effectiveness. Structure balances the need for
specialization with need for integration. It provides a formal means of decentralizing and
centralizing organizational and control needs with the strategy. An organization structure
is necessary if strategic purpose is to be accomplished. Thus, organizational structure is a
major priority in implementing a carefully formulated strategy.
5
If activities, responsibilities and interrelationships are not organized in a manner that is
consistent with the strategy chosen, the structure is left to evolve on its own. If the
structure and the strategy are not coordinated, this may result in inefficiencies,
misdirection, and fragmented efforts. Rantakyro (2000) argues that to implement the
chosen strategies, there are many important decisions to make such as how to structure
the council.
The organizational structure has to support the strategies (Johnson, 1998). Structuring
the organization involves decisions about how to coordinate activities, relationships, and
communication among the internal stakeholders. The organization can be structured by
focusing on functionality, products, markets, projects or cooperation (Johnson, 2002).
1.1.3 Local government authorities in Kenya
Local Authorities in Kenya is created under CAP 265 of the laws of Kenya. It is part of
the government and is fairly autonomous in nature. Under the same Act the minister for
local government has powers to supervise the local authorities. For instance the minister
approves local authority revenue sources, budgets, and can dissolve a council and appoint
a commission if it is justified (Judson, 1991).
Overall the minister of local government is responsible for ensuring that local authorities
have the institutional and policy framework, systems, and capacity to effectively provide
the required local services in a responsible, efficient, accountable, and transparent
manner. The challenge for local government in Kenya is to keep the cities economically
viable by delivering a high level of services.
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1.1.4 The Nairobi City Council
The Nairobi city council, CCN, was brought into being by a royal charter by King
George the sixth. It was given status of municipal in 1935 and was elevated to city status
in 1950. The literature review was to enable me know what has been done concerning
management practices that implement strategy on revenue collection, the achievements
that have been made and challenges that should be reviewed by the study.
The city council of Nairobi is a legal entity created by an act of parliament cap 265 of the
laws of Kenya and local government act. Its main function is to deliver services to the
residents of Nairobi and maintain it. These services include water and sewerage,
education, infrastructure, city planning and development control, public and medical
health services, social services, welfare, youth, markets, trading and housing services,
roads, passages and street lighting services.
CCN derives its legal mandate from the local government act (Cap 265) of the laws of
Kenya amongst other acts of parliament that augment its diverse core functions and
priorities. These priorities are contained in various policy and planning documents such
as the national development plans, poverty reduction strategy paper and Economic
Recovery Strategy (ERS) for wealth and employment creation in the medium term
and Kenya’s vision 2030 and the millennium Development Goals (MDG’s) in the long
term (GOK 2007 Kenya vision 2030). The revenue structure of the Nairobi City Council
(NCC) has not been as productive as desired.
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Too often the growth in revenue has failed to catch up with government spending
pressures, a situation that has occasioned huge imbalances between the demand and
supply of public budgetary resources (GOK 2007 Kenya vision 2030). The NCC has then
had to ask the local authorities to reform their tax structures with the general objectives of
revenue adequacy, economic efficiency, equity and fairness and simplicity (Osoro, 1993).
The government has been concerned about the escalating below standard performance of
the Nairobi City Council and has instituted reforms to them which have costed the
government huge resources. New forms of leadership, institutional reforms and local
networks are required for the Nairobi City Council to cope with emerging trends and
challenges of urbanization (Kaplan, 2001).
The NCC is blamed for poor planning of their mandate of revenue improvement,
infrastructure and service delivery to residents (GOK 2007 Kenya vision 2030). Revenue
collection has become an issue in local authorities because of the financial problems they
have been experiencing such as salary delay and difficulties in honoring their obligations
as and when they fall due (Kenny, 2003). The Nairobi City Council has been lacking
funds to facilitate delivery of some essential services such as fire control and garbage
collection in various towns (GOK 2007 Kenya vision 2030).
The minister of local government, under which the Nairobi City Council sits, has
incessantly proposed for some NCC employees to be retrenched in local Authorities in
order to reduce their wage bill (Kiptugen, 2003). The above mentioned concerns are
indicators that the Nairobi City Council still falls behind in revenue collection (MOLG
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2006, Strategic plan). Over the last twenty years, Kenya has increased the powers and
responsibilities of the NCC but has not matched those responsibilities with revenues at
the local level. Not only does the Nairobi City Council depend heavily on
intergovernmental transfers but also their own revenue sources are inadequate (MOLG
2006, Strategic plan).
City Councils in less developed countries faces even greater challenges when it comes to
implementing strategies for effective revenue collection (Dirie, 2005). The possible
challenge facing the implementation of strategies adopted for revenue collection in the
Nairobi City Council may include a number of things. First, the Nairobi City Council
revenue base is often weak, especially when compared to the revenue base of the local
authorities or central government thus have difficulty in hiring strategy consultants
(Lorange, 1998).
Secondly, it does not concentrate on the activities that generate its own viable revenues
(MOLG 2006, Strategic plan). For example, property taxes are difficult to administer and
collect (Bird and Slank, 2004). Thirdly, the NCC often have little or no control over the
tax rates it can levy and therefore cannot implement strategies that involve change in tax
rates if any (GOK 2007 Kenya vision 2030). It is the minister of local government who
has the power over the taxes the Nairobi City Council can levy (GOK 2007 Kenya vision
2030). Fourthly, there is the little or no use of Information and Communication
Technology. Some departments of the Nairobi City Council have not computerized its
operations thus affecting its revenue collection strength (MOLG 2006, Strategic plan).
Fifthly, an organizational structure not aligned to the objectives of the NCC.
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There is no central department which coordinates strategy implementation to ensure that
revenue collection is efficient and effective (GOK 2007 Kenya vision 2030). The main
factors that may contribute to improved strategy implementation for effective revenue
collection include changes in tax legislation, computerization of all NCC functions,
operationalizing each department to match overall strategies and department strategies as
well as concentrating on core activities that are more viable, outsourcing the ones that are
not viable for the NCC (GOK 2007 Kenya vision 2030), (Sirkin et al, 2005).
Walt Dulaney (2004) conducted a longitudinal examination of business growth and
cumulative revenue performance and he found that companies with powerful business
platforms outperformed peers in cumulative revenue growth over a 15 years period. He
concludes that business platforms can be means for organizational renewal, continuum
innovation and sustainable success.
The Nairobi City Council has turned to the private sector to deliver and fund public
sector services through explicit public-private partnerships. An example of this would be
approaching different private companies to fund the landscaping of different areas in the
municipality (GOK 2007 Kenya vision 2030). The rationale for private involvement in
the delivery of local public service is the lack of funds and the need to improve the
efficiency and effectiveness of delivery (GOK 2007 Kenya vision 2030).
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1.2 Research Problem
Strategy implementation or strategy execution task is easily the most complicated and
time consuming part of strategic management, Schaap (2006). While strategy formulation
is primarily an intellectual and creative act involving analysis and synthesis,
implementation is a hands-on operation and action oriented human behavioral activity
that calls for executive leadership and key managerial skills. In addition, implementing a
newly crafted strategy often entails a strategy in corporate direction and frequently
requires a focus on effecting strategic strategy, Schaap (2006).
The Nairobi City Council of Nairobi is mandated to provide public services, initiate
infrastructure development and undertake basic administrative tasks including creating an
environment for its stakeholders to participate in economic activities which are stimulants
of economic development. In order to perform these duties the city council is authorized
to mobilize revenue collection from local sources for sustainable methods of municipal
finance. The ideal situation is that there must be enough revenue to make the council
meet its daily financial obligations and spend on the right priorities (GOK 2007 Kenya
vision 2030).
Strategy turned into operation may ensure that the Nairobi City Council remains
commercially viable. The real situation is that not enough revenue is generated by the
council to run its daily operations. Financial institutions are complaining of nonpayment
of overdrafts advanced to the council. Statutory institutions are complaining of no
remittance of statutory deductions.
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Workers are complaining of delayed salaries and pensioners of no remittance of their
terminal benefits to the local Authorities pension trust fund.Many studies done in the city
council of Nairobi has not focused at the challenges facing the implementation of
strategies adopted by the city council of Nairobi for effective revenue collection given
that revenue is the back borne of any organization. Mituhallah (2007) conducted a
research on revenue sources in city council of Nairobi. Kingoina (2007) conducted a
study on management of strategic change practices on performance contract and Rapid
Result.
Mwangi (2008) conducted a study on factors influencing local Authority tax compliance.
Munge (2005) conducted a research on the challenge facing the implementation of
strategies adopted for provision of quality services. Otieno (2006) conducted a research
on service delivery to Nairobi residents. It is evident that these studies did not focus on
the challenges facing the implementation of strategies adopted by the city council of
Nairobi for effective revenue collection thus creating a knowledge gap. Therefore there is
need to formulate studies to provide an understanding on the challenge facing the
implementation of strategies adopted for revenue collection in city council of Nairobi to
bridge the study gap that exists.
In view of the above the main purpose of the study is to assess the challenges facing the
implementation of strategies adopted by the city council of Nairobi for effective revenue
collection. Due to lack of revenue Nairobi city council is blamed on almost all areas of
what it is mandated to do. The existing revenue collection administration is generally
inefficient and what is collected has, in some cases, been inappropriately apportioned.
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1.3 Research Objectives
The overall objective of this study is to find out the challenges facing the implementation
of strategies adopted by the city council of Nairobi for effective revenue collection.
1.4 Value of the Study
The research findings are expected to contribute to a better understanding of strategic
management implementation with a bias to stakeholder’s theory. The study findings was
also enable organizations better understand that an organization’s clear policy execution
must address the intangibles of cross functional integration, reward systems, and cultures
as well as the tangibles captured in most strategic planning documents.
The study will attempt to answer two core questions; first, what is the purpose of the
firm. Secondly, practices holds what responsibility does management have to
stakeholders, hence pushes managers to articulate how they want to do the business.
Specifically the kind of relationships they want and need to create with their stakeholders
to deliver on their purpose.
Finally, the research findings will contribute to a better understanding of promoting
strategic thinking among the managers of the NCC when addressing understanding of
strategic management implementation in an increasingly competitive environment. The
research will form a basis for further research in this area among academics and lastly,
the study will form a reference in the field of strategic management within its core
concepts of strategic responses to environmental changes.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter is concerned with the review of pertinent literature. It covers both theoretical
and empirical literature. Theoretical literature focuses on the strategy implementation
challenges and the capacity to adapt to the rapid changes in the environment on time. On
the other hand, empirical literature lays emphasis on findings of empirical studies on the
performance of entities.
2.2 Theoretical review of Strategy Implementation
The general purpose of revenue in any organization is to meet the cost of operations. The
revenue of an organization is affected by the economic resources that it controls and its
capacity to adapt to the rapid changes in the environment on time (Lynch, 1995). Thus
the revenue may affect the performance of an entity. Each of the separate theories
discussed shades some light on the same aspect of revenue.
Stakeholder theory begins with the assumption that value is necessarily and explicitly a
part of doing business. It asks managers to articulate the shared sense of the value they
create and what brings its core stakeholders together (Langfield, 1997). It also pushes
managers to be clear about how they want to do business, specifically what kinds of
relationships they want and need to create with stakeholders to deliver on their purpose.
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The focus of stakeholder theory is articulated in two core questions (Freeman, 1994).
First, it asks, what is the purpose of the firm? This encourages managers to articulate the
shared sense of the value they create, what brings its core stakeholders together. This
propels the firm forward and allows it to generate outstanding performance, determined
both in terms of its purpose and market place financial metrics (Kenny, 2003). Secondly,
stakeholders theory asks, what responsibility does management have to stakeholders?
This pushes managers to articulate how they want to do the business.
Specifically the kind of relationships they want and need to create with their stakeholders
to deliver on their purpose. Many firms have developed and run their businesses in terms
highly consistent with stakeholder theory (Kaplan, 2004). Systems Theory is the trans-
disciplinary study of the abstract organization of phenomena, independent of their
substance, type or spatial or temporal scale of existence (Kaplan, 1993). They
emphasized that real systems are open to, and interact with their environments, and they
can acquire qualitatively new properties through emergence, resulting in continual
evolution (Kaplan, 2005).
Rather than reducing an entity the properties of its parts or elements, systems theory
focuses on the arrangement of and relations between the parts which connect them into a
whole (Kamanda, 2006). Systems analysis developed independently of systems theory,
applies systems principles to aid a decision-maker with problems of identifying,
reconstructing, optimizing, and controlling a system while taking into account multiple
objectives, constraints and resources (Jauch, 1984). It aims to specify possible courses of
action, together with their risks, costs and benefits.
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2.3 Empirical review
Mituhallah (2007) conducted a research on revenue sources in Nairobi city council using
descriptive research design. She found out that revenue sources such as Neon signs, Bill
boards, advertisements, plans, Approvals, Public Health, Single business permit,
Displays, Rates and Rents can generate enough revenue; she also found out that political
interference is contributing 60% of revenue miss-management. She recommended that
financial management can make city council of Nairobi self-sustaining even without
LATF.
Munge (2005) conducted research on challenge facing the implementation of strategies
adopted for provision of quality services in local authorities. He found out that
interference from civil leaders and members of parliament is a serious factor affecting
provision of quality services and revenue collection management (Johnson, 1998).
Mwangi (2008) conducted a study on factors influencing local authority tax compliance.
He noted that under reporting and under payment is the most prevalent form of tax non-
compliance.
Tax procedures are complex citing multi-stages approvals, bureaucracy and red-tape
in administrative , which creates room for corruption. He also recommended Discount
rates for early payments and consideration of tax amnesty for those that have not been
compliant so as to bring more of them into the Tax net. According to Kanter (1997),
management of revenue was require tuning into the environment challenging
assumptions, crafting a vision, using diplomatic skills to get favorable responses.
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Anassi (2004) conducted a study on corruption on local Authorities. He found out that
corruption in local Authorities has reached unprecedented level and that it is at the local
authorities that it is at the local Authorities that nepotism, tribalism, are manifested. He
also found out that corruption has undermined efforts to make these institutions
democratically governable and effective. Kingoina (2007) conducted a study on
management of strategic change practices on performance contract and rapid results
initiative. He found out that performance contract together with Rapid Results
2.4 Strategy Implementation Process
The main functions of strategic management have been explained by Robbins and
Coulter (1996) as identifying the organization's current mission, objectives, and
strategies, analyzing the environment, identifying the opportunities and threats, analyzing
the organization's resources, identifying the strengths and weaknesses, formulating and
implementing strategies, and evaluating results (Decoene, 2006).
Strategic decisions determine the organizational relations to its external environment,
encompass the entire organization, depend on input from all of functional areas in the
organization, have a direct influence on the administrative and operational activities, and
are vitally important to long-term health of an organization (Shirley, 1982). According to
Schermerhorn (1989), strategies must be well formulated and implemented in order to
attain organizational objectives. Schermerhorn (1989) determined that the strategy
implementation process included the many components of management and had to be
successfully acted upon to achieve the desired results.
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Moreover, the critical point is that effective and successful strategy implementation
depends on the achievement of good “fits” between the strategies and their means of
implementation. Robbins and Coulter (1996) have taken into consideration that no matter
how effectively a company has planned its strategies, it could not succeed if the strategies
were not implemented properly. Harrison (1996) also clarified that the more ineffective
the top management decisions, the more ineffective are the choices made at lower levels
of management.
Similarly, if top management's strategic choices tend to be successful, it reflects
favorably on choices made in other parts of the organization. Simons and Thompson
(1998) refer to three categories of factors that affected strategic decision-making process:
environmental factors; organizational factors; and decision-specific factors. Here,
environmental factors mean external agents such as national culture, national economic
conditions, and industry conditions. Organizational factors refer to organizational
structure, organizational culture, structure of decision making board of directors, impact
of upward influence, and employee involvement. Decision-specific factors can be
explained as time, risk, complexity, and politics.
According to Porter (1979) strategists must assess the forces affecting competition in
their industry and identify their company's strengths and weaknesses, then strategists can
devise a plan of action that may include first, positioning the company so that its
capabilities provide the best defense against the competitive force; and/or second,
influencing the balance of the forces through strategic moves, thereby improving the
company's position.
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Beer et al. (1990), and Woolridge and Floyd (1990) emphasized that the strategy
implementation could be more difficult than thinking up a good strategy. Harrison and
Pelletier (1998) explained that the real value of a decision surfaced only after the
implementation of a decision. In other words, it will not be enough to select a good
decision and effective results will not be attained unless the decision is adequately
implemented. Hitt and Tyler (1991) argued that it was essential that strategic level
manager's demographic characteristics should have been examined for the formulation
and implementation of strategic decisions.
Wessel (1993) stated that there were mostly individual barriers to strategy
implementation such as too many and conflicting priorities, insufficient top team
functions, a top down management style, inter-functional conflicts, poor vertical
communication, and inadequate management development. Eisenstat (1993) pointed out
that most companies trying to develop new organization capacities failed to get over
these organizational hurdles: competence, co-ordination, and commitment.
Sandelands (1994) indicated that there were difficulties to conjecture the commitment,
time, emotion, and energy needed to translate plans into action. Lingle and Schieman
(1994) stated that market, people, finance, operation, adaptability, and environmental
factors play a vital role to long-term successful strategy implementation. Christensen and
Donovan (1998) mentioned that intended strategies would be implemented as they have
been envisioned if three conditions were met. First, those in the organization must
understand each important detail in management's intended strategy.
19
Second, if the organization is to take collective action, the strategy needs to make as
much sense to each of the members in the organization as they view the world from their
own context, as it does to top management. Finally, the collective intentions must be
realized with little unanticipated influence from outside political, technological, or market
forces. Peng and Litteljohn (2001) noted two dimensions of strategy implementation:
structural arrangements, and the selection and development of key roles. According to
Govindarajan (1989), effective strategy implementation is affected by the quality of
people involved in the process.
Peng and Litteljohn (2001) claimed the quality of people as skills, attitudes, capabilities,
experiences and other characteristics required by a specific task or position. McKinsey’s
(1982) model describes the seven factors critical for effective strategy execution. The 7-S
model identifies the seven factors as strategy, structure, systems, staff, skills,
style/culture, and shared values. Strategy is the plan of action an organization prepares in
response to, or anticipation of, changes in its external environment.
Strategy is differentiated by tactics or operational actions by its nature of being
premeditated, well thought through and often practically rehearsed. It deals with
essentially three questions, (1) where the organization is at this moment in time, (2)
where the organization wants to be in a particular length of time and (3) how to get there.
Thus, strategy is designed to transform the firm from the present position to the new
position described by objectives, subject to constraints of the capabilities or the potential.
(Kaplan, 2005). Structure refers to the way in which tasks and people are specialized and
divided and how authority is distributed, (Kaplan, 2005).
20
Organizations are structured in a variety of ways, dependent on their objectives and
culture. The structure of the company often dictates the way it operates and performs
(Waterman et al., 1980). Traditionally, the businesses have been structured in a
hierarchical way with several divisions and departments, each responsible for a specific
task such as human resources management, production or marketing. Many layers of
management controlled the operations, with each answerable to the upper layer of
management. Although this is still the most widely used organizational structure, the
recent trend is increasingly towards a flat structure where the work is done in teams of
specialists rather than fixed departments.
The idea is to make the organization more flexible and devolve the power by empowering
the employees and eliminate the middle management layers (Boyle, 2007). Systems refer
to the formal and informal procedures used to manage the organization, including
management control systems, performance measurement and reward systems, planning,
budgeting and resource allocation systems, and management information systems
(Kaplan, 2005). Every organization has some systems or internal processes to support and
implement the strategy and run day-to-day affairs. These processes are normally strictly
followed and are designed to achieve maximum effectiveness.
Traditionally organizations have been following a bureaucratic-style process model
where most decisions are taken at the higher management level and there are various and
sometimes unnecessary requirements for a specific decision (for example, procurement of
daily use goods) to be taken. Increasingly, organizations are simplifying and modernizing
their process by innovation and use of new technology to make the decision quicker.
21
Special emphasis is on the customers with the intention to make the processes that
involve customers as user friendly as possible (Lynch, 2005). Staff refers to the people,
their backgrounds and competencies; how the organization recruits, selects, trains,
socializes, manages the careers, and promotes employees. (Kaplan, 2005). Organizations
are made up of humans and it's the people who make the real difference to the success of
the organization in the increasingly knowledge-based society.
The importance of human resources has thus got the central position in the strategy of the
organization, away from the traditional model of capital and land. All leading
organizations such as IBM, Microsoft, Cisco, etc put extraordinary emphasis on hiring
the best staff, providing them with rigorous training and mentoring support, and pushing
their staff to limits in achieving professional excellence, and this forms the basis of these
organizations strategy and competitive advantage over their competitors. It is also
important for the organization to instill confidence among the employees about their
future in the organization and future career growth as an incentive for hard work (Purcell
and Boxal, 2003).
Skills refer to the distinctive competencies of the organization; what it does best along
dimensions such as people, management practices, processes, systems, technology, and
customer relationships (Kaplan, 2005).Style/culture refers to the leadership style of
managers – how they spend their time, what they focus attention on, what questions they
ask of employees, how they make decisions; also the organizational culture (the dominant
values and beliefs, the norms, the conscious acts taken by leaders (Kaplan, 2005).
22
According to Graham (2007), all organizations have their own distinct culture and
management style. It includes the dominant values, beliefs and norms which develop over
time and become relatively enduring features of the organizational life. It also entails the
way managers interact with the employees and the way they spend their time. Businesses
have traditionally been influenced by the military style of management and culture where
strict adherence to the upper management and procedures was expected from the lower-
rank employees (Dressler, 2003). However, there have been extensive efforts in the past
couple of decades to change the culture to a more open, innovative and friendly
environment with fewer hierarchies and smaller chain of command (Ahn, 2001).
Culture remains an important consideration in the implementation of any strategy in the
organization (Martins et al, 2003).Lastly, shared values refer to the core or fundamental
set of values that are widely shared in the organization and serve as guiding principles of
what is important; vision, mission, and values statements that provide a broad sense of
purpose for all employees (Kaplan, 2005). All members of the organization share some
common fundamental ideas or guiding concepts around which the business is built. This
may be to make money or to achieve excellence in a particular field.
These values and common goals keep the employees working towards a common
destination as a coherent team and are important to keep the team spirit alive. The
organisations with weak values and common goals often find their employees following
their own personal goals that may be different or even in conflict with those of the
organization or their fellow colleagues (Martins and Terblanche, 2003).
23
The 7-S model posits that organizations are successful when they achieve an integrated
harmony among three “hard” “S's” of strategy, structure, and systems, and four “soft”
“S's” of skills, staff, style, and super-ordinate goals (now referred to as shared
values).The hard components are the strategy, structure and systems which are normally
feasible and easy to identify in an organization as they are normally well documented and
seen in the form of tangible objects or reports such as strategy statements, corporate
plans, organizational charts and other documents. (Kaplan, 2005).
The remaining four, however, are more difficult to comprehend. The capabilities, values
and elements of corporate culture, for example, are continuously developing and are
altered by the people at work in the organization. It is therefore only possible to
understand these aspects by studying the organization very closely, normally through
observations and/or through conducting interviews. Some linkages, however, can be
made between the hard and soft components. For example, it is seen that a rigid,
hierarchical organizational structure normally leads to a bureaucratic organizational
culture where the power is centralized at the higher management (Waterman et al., 1980).
According to Drazin et al, (1984), it is also noted that the softer components of the model
are difficult to change and are the most challenging elements of any change-management
strategy. Changing the culture and overcoming the staff resistance to changes, especially
the one that alters the power structure in the organization and the inherent values of the
organization, is generally difficult to manage. However Boyle, (2007) suggests that if
these factors are altered, they can have a great impact on the structure, strategies and the
systems of the organization.
24
Over the last few years, there has been a trend to have a more open, flexible and dynamic
culture in the organization where the employees are valued and innovation encouraged.
This is, however, not easy to achieve where the traditional culture has been dominant for
decades and therefore many organizations are in a state of flux in managing this change
Lynch and Cross (1995) identify three criteria that must be met by performance
management systems if they are to effectively mediate between an organization’s strategy
and its day-to-day activities (Waterman et al.,1980).
These “necessary” conditions comprise: that the system must explicitly link operational
targets to strategic goals; it must integrate financial and non-financial performance
information; and the system should focus business activities on meeting customer
requirements. It is asserted that the balanced scorecard model fundamentally meets all of
these criteria by providing a “truly strategic control system” (Mooraj et al., 1999, p. 486)
that “puts strategy and vision at the centre” (Kaplan and Norton, 1992, p. 79).
Successful strategy implementation, it is suggested, requires sound mechanisms for
directing activity and behaviour Goold (1991). This would including effective
communication systems as well as appropriate strategic and management controls. The
balanced scorecard's four perspectives as manifested in Kaplan and Norton's (2004, p. 10)
strategy maps provide “a level of granularity that improves clarity and focus” thereby
creating clear direction and, potentially, through the development and publishing of the
strategy map, facilitate understanding and coordination across the organization.
25
The importance of enabling sound “two-way” communications within organisations is
seen as fundamental to the effective implementation of strategy (Rapert et al., 2002), with
a particular emphasis on facilitating useful feedback and “bottom-up” messages (Otley,
1999). The process of creating an organisational balanced scorecard essentially
commences with a full strategic appraisal and the clear articulation of the organization’s
strategic vision and objectives (Kaplan and Norton, 1992; Atkinson and Brander Brown,
2001), this process can in itself can build consensus and engender learning which can be
of enormous value (Neely et al., 2000).
Through this process of definition and communication of core values throughout an
organization, moreover, the Balanced Scorecard provides an effective “boundary” control
system (Mooraj et al., 1999). Then, as the balanced scorecard approach makes explicit
the “cause and effect” of a strategy, it also usefully converts strategic aims into tangible
objectives and measures (Brander Brown and McDonnell, 1995; Kaplan and Norton,
1996b; Martinson et al., 1999). This stage, moreover, if the scorecard is implemented
participatively with measures identified and targets set cooperatively rather than imposed.
Decoene et al, (2006), actively supports organisational learning and reflection, which
encourages “interactive” control through the testing of “cause and effect” relationships
(Mooraj et al., 1999). This also enables front line managers to have a “basis for selecting
among the diverse opportunities they might face” (Bartlett and Goshal, 1996, p. 39) and
resisting the distraction of other activities (Alexander, 1985; Beer and Eisenstat, 2000).
26
There are also less obvious benefits of implementing a scorecard. The process of building
and utilizing the scorecard provides an opportunity to identify priorities and reconcile
different stakeholder demands as well as enhancing strategic feedback and learning
(Denton and White, 2000), thus also enabling effective “diagnostic” control (Simons,
1994) through the monitoring of financial and other “lag” indicators against pre-set
targets (Mooraj et al., 1999).
In addition to substantially meeting Lynch and Cross' (1995) necessary conditions, the
balanced scorecard appears to offer a range of additional attributes that may also support
successful strategy implementation. It has been shown that the keys to enabling such
communications are an organisation's “middle managers” who have been shown to play
“a pivotal role” (Aaltonen and Ikåvalko, 2002, p. 417) and are viewed as strategic
“actors” (Bartlett and Goshal, 1996) playing an important role in strategic transformation.
The scorecard approach encourages the establishment of co-ordinated scorecards at every
level of an organization which, when implemented properly, engage middle managers.
Such a process not only necessitates considerable active communication involving
everyone within an organization (Alexander, 1985; Aaltonen and Ikåvalko, 2002), it also
permits the useful integration of such scorecards with management and employee
incentive programmes (Denton and White, 2000), potentially involving the development
of individual/personal scorecards which can be positively utilized to align personal and
organization goals and encourage “ownership” (Mooraj et al., 1999; Nørreklit, 2000).
27
Noble states that, “the degree of involvement across the organization appears to be a
predictor of implementation success” (Noble, 1999, p. 132); the scorecard facilitates this
involvement throughout the strategy implementation process. It is further suggested that
the balanced scorecard approach should be viewed as a template not a strait-jacket
(Kaplan and Norton, 1996, p. 34). Such a standpoint potentially offers organisations a
considerable degree of flexibility to address their unique circumstances while still
“pulling” management and employees in the core strategic direction (Ahn, 2001).
Kenny (2003) argues that strict adherence to the scorecards four perspectives cannot be
appropriate. This adaptive capacity also assists the balanced scorecard to address Goold
and Quinn's (1990) previously noted concerns regarding “matching” appropriate control
mechanisms to different levels of environmental turbulence and an organization’s ability
to identify and monitor its strategic objectives.
In this regard, Van Veen-Dirks and Wijn (2002) further propose that, additional
flexibility (which is needed in rapidly changing market environments) can be provided by
augmenting the balanced scorecard approach with critical success factors (CSFs). The
explicit incorporation of such factors not only keeps attention focused on an
organization’s critical strategic objectives (Kaplan and Norton, 1996), it also avoids the
potential danger of management information overload (Brotherton and Shaw, 1996).
Although there are some criticisms and “question marks” concerning the balanced
scorecard approach, many of these seem to represent problems of practical application
rather than fundamental flaws.
28
There is evidence to show that organizations approach to implementing a scorecard is
maturing (Kenny, 2003) as the business community learns how to get the most out of this
“important management tool” (Bourne et al., 2002) and that there is increasingly more
guidance on establishing measures (Kaplan and Norton, 2004) and implementing a
scorecard. Moreover, there is also evidence of the efficacy of the balanced scorecard
framework for supporting strategy implementation by linking strategy to operations such
that it is proposed that the balanced scorecard addresses many of the problems associated
with strategy implementation. (Bourne et al., 2002)
2.5 Factors Affecting Strategy Implementation
The fatal problem with strategy implementation is the de facto success rate of intended
strategies. In research studies it is as low at 10 percent (Judson, 1991). Despite this
abysmal record, strategy implementation does not seem to be a popular topic at all. In
fact, some managers mistake implementation as a strategic afterthought and a pure top-
down-approach. Management spends most of its attention on strategy formulation. This
can be documented by the focus on strategy formulation in strategic management
literature.
To resolve this, strategic management should accomplish its very own shift of emphasis
by moving from a 90:10 concern with strategy formulation relative to implementation to
a minimum 50:50 proportion with each (Grundy, 1998).To overcome and improve the
difficulties in the implementation context, Rapa and Kauffman (2005) compiled the
following checklist of ten critical points.
29
2.5.1 Commitment of Top Management
The most important thing when implementing a strategy is the top management’s
commitment to the strategic direction itself. This is undoubtedly a prerequisite for
strategy implementation. Therefore, top managers must demonstrate their willingness to
give energy and loyalty to the implementation process. This demonstrable commitment
becomes, at the same time, a positive signal for all the affected organizational members
(Rapa and Kauffman, 2005).
To successfully improve the overall probability that the strategy is implemented as
intended, senior executives must abandon the notion that lower-level managers have the
same perceptions of the strategy and its implementation, of its underlying rationale, and
its urgency. Instead, they must believe the exact opposite. They must not spare any effort
to persuade the employees of their ideas (Rapa and Kauffman, 2005).
2.5.2 Involvement of Middle Manager’s Valuable Knowledge
Strategy implementation is not a top-down-approach. Consequently, the success of any
implementation effort depends on the level of involvement of middle managers. To
generate the required acceptance for the implementation as a whole, the affected middle
managers’ knowledge (which is often underestimated) must already be accounted for in
the formulation of the strategy. Then, by making sure that these managers are a part of
the strategy process, their motivation towards the project will increase and they will see
themselves as an important part in the process (Rapa and Kauffman, 2005).
30
Unfortunately, in practice, managers and supervisors at lower hierarchy levels who do
have important and fertile knowledge are seldom involved in strategy formulation. When
they are, however, the probability for realizing a smooth targeted and accepted strategy
implementation process increases substantially. Research studies indicate that less than 5
percent of typical workforces understand their organization’s strategy (Kaplan and
Norton, 2001). This is a disturbing statistic as it is generally believed that, without
understanding the general course of strategy, employees cannot effectively contribute to a
strategy implementation.
To involve employees is an important milestone to make strategy everyone’s everyday
job. That is why the involvement of middle managers is essential to increase the general
awareness of the strategy. The involvement of middle managers in the formulation, helps
build consensus for the strategy. A lack in strategic consensus can limit a company’s
ability to concentrate its efforts on achieving a unified set of goals (Grundy, 1998).
2.5.3 The Role of Communication
At first look, the suggestion that communication aspects should be emphasized in the
implementation process seems to be a very simple one. Even though studies point out that
communication is a key success factor within strategy implementation (Miniace and
Falter, 1996), communicating with employees concerning issues related to the strategy
implementation is frequently delayed until the changes have already crystallized. In this
context, it is recommended that an organization institute a two-way-communication
program that permits and solicits questions from employees.
31
In addition to soliciting questions and feedback, the communications should tell
employees about the new requirements, tasks and activities to be performed by the
affected employees, and, furthermore, cover the reason (“the why”) behind changed
circumstances. It is essential both during and after an organizational change to
communicate information about organizational developments to all levels in a timely
fashion. However, one may not misunderstand communication, or the sharing of
information, as engagement the direct dialogue that produces active participants in the
change process (Alexander, 1985).
The way in which a change is presented to employees is of great influence to their
acceptance of it. To deal with this critical situation, an integrated communications plan
must be developed. Such a plan is an effective vehicle for focusing the employees’
attention on the value of the selected strategy to be implemented (Rapa and Kauffman,
2005).
2.5.4 Integrative Point of View
Traditional strategy implementation concepts generally over-emphasize the structural
aspects and reduce the whole effort down to an organizational exercise. It is dangerous,
however, when implementing a new strategy, to ignore the other existing components.
Strategy implementation requires an integrative point of view. Not only the
organizational structure, but cultural aspects and the human resources perspective are to
be considered as well. (Rapa and Kauffman, 2005).
32
An implementation effort is ideally a boundary less set of activities and does not
concentrate on implications of only one component, e.g. the organizational structure It is
of great importance to integrate soft facts as well in the reflection of the implementation
process. It is the consideration of soft and hard facts together that ascertains that cultural
aspects and human resources receive at least the same status as organizational aspects.
Altogether, such an integrative interpretation allows an important scope of development
for implementation activities (Rapa and Kauffman, 2005).
2.5.5 Clear Assignment of Responsibilities
One of the reasons why strategy implementation processes frequently result in difficult
and complex problems or even fail at all – is the vagueness of the assignment of
responsibilities. In addition, these responsibilities are diffused through numerous
organizational units. Cross-functional relations are representative of an implementation
effort. This is indeed a challenge, because as already mentioned before organizational
members tend to think only in their “own” department structures. This may be worsened
by over-bureaucracy and can thus end up in a disaster for the whole implementation
(Rapa and Kauffman, 2005).
In power struggle avoidance, one should create a plan with clear assignments of
responsibilities regarding detailed implementation activities. This is a preventive way of
proceeding. Responsibilities are clear and potential problems are therefore avoided (Rapa
and Kauffman, 2005).
33
2.5.6 Preventive Measures Against Change Barriers
Change is part of the daily life within an organization. The ability to manage change has
shown to be a core competency for corporations. A great challenge within strategy
implementation is to deal with potential barriers of the affected managers.
Implementation efforts often fail when these barriers are underestimated and prevention
methods are not adopted at the beginning. One has to be aware that barriers against the
implementation of the strategy can lead to a complete breakdown of the formulated
strategy. (Rapa and Kauffman, 2005).
In psychology, much research is done about human barriers. The cause for these barriers
is seen in affective and non-logical resistances, which are, in a way, incomprehensible
because they come out of the subconscious of human beings. Barriers to implementing a
strategy range from delay to outright rejection. By changing the way they view and
practice strategy implementation, senior executives can effectively transform change
barriers into gateways for a successful execution, (Rapa and Kauffman, 2005).
2.5.7 Teamwork
Teamwork plays an important role within the process of strategy implementation. When
it comes down to implementation activities, however, it is often forgotten. It is
indisputable, that teams can play an important part to promote the implementation (Rapa
and Kauffman, 2005). To build up effective teams within strategy implementation the
Myers-Briggs typology can be useful to ascertain person-to-person differences.
34
Differences in personality can result in serious inconsistencies in how strategies are
understood and acted on. Recognizing different personality types and learning how to
handle them effectively is a skill that can be taught. Over one million surveys are
performed each year in corporate settings for team building and management
development. More than any other field of activity, implementation is the area that
benefits most from a trained and personality-sensitive management team (Noble, 1999).
2.5.8 Individuals’ Differences
Human resources represent a valuable intangible asset. Latest study research indicates
that human resources are progressively becoming the key success factor within strategy
implementation. In the past, one of the major reasons why strategy implementation
efforts failed was that the human factor was conspicuously absent from strategic planning
(Lorange, 1998). This leads to a dual demand (Rapa and Kauffman, 2005).
First, considerations regarding people have to be integrated into considerations about
strategy implementation in general. Second, the individual behavior of these persons is to
be taken into account. Individual personality differences often determine and influence
implementation. The difference of individuals requires, as a consequence, different
management styles. For the purpose of strategy implementation it is desirable to create a
fit between the intended strategy and the specific personality profile of the
implementation’s key players in the different organizational departments (Rapa and
Kauffman, 2005).
35
2.5.9 Supportive implementation instruments
To facilitate the implementation in general implementation instruments should be applied
to support the processes adequately. Two implementation instruments are the balanced
scorecard and supportive software solutions (Rapa and Kauffman, 2005). The balanced
scorecard is a popular and prevalent management system that considers financial as well
as non-financial measures. Moreover it provides a functionality to translate a company’s
strategic objectives into a coherent set of performance measures (Kaplan and Norton,
1993).
When it comes to meeting the criteria of a strategy implementation instrument, there is an
excellent fit. The individual character of each balanced scorecard assures that the
company’s strategic objectives are linked to adequate operative measures. As a
consequence, it provides even more than a controlling instrument for the implementation
process. The balanced scorecard provides a framework to integrate the strategic planning
and meets the requirements that the strategic planning system itself can display (Rapa and
Kauffman, 2005).
In the context of implementing strategies, the application of software solutions seems to
be neglected. Recent experience has shown that IT-support is gaining more and more
importance. Information tools must be available and adequate to allow strategic decision
makers to monitor progress toward strategic goals and objectives, track actual
performance, pinpoint accountability, and most important provide an early warning of
any need to adjust or reformulate the strategy (Rapa and Kauffman, 2005).
36
Unfortunately, this seems to be limited to enterprise resource planning (ERP) systems,
which are prevalent in the operative environment of a company’s day-to-day business.
The strategy implementation perspective demands systems with different criteria than
those of conventional systems. The supportive character in monitoring and tracking the
implementation process should be in the center of interest (Rapa and Kauffman, 2005).
In the past, these activities were tracked manually or launched on an ad hoc basis so that
there was a lack in mandatory installed business processes. The supportive application of
adequate software solutions can be more than helpful to improve the quality of strategy
implementation. In addition to that, a software solution is a starting point to define as
mentioned above clear assignments of responsibilities throughout the organization’s
implementation processes (Rapa and Kauffman, 2005).
2.5.10 Buffer Time for Unexpected Incidents
One of the most critical points within strategy implementation processes is the exceeding
of time restrictions. This can be attributed to an underestimation on the part of many
executives who do not have a clearly focused view on the complexities involved in
implementing strategies and on the general process to deal with these multifaceted
complexities. One has to find out the time- intense activities and harmonize them with the
time capacity. One method for accomplishing this is to work with the affected divisions
and the responsible managers (Rapa and Kauffman, 2005).
37
In addition to calculating the probable time frame an extra buffer should be calculated to
account for unexpected incidents that might occur at any time. Basically, it is difficult
enough to identify the necessary steps of the implementation. It is even more difficult to
estimate an appropriate time frame. (Rapa and Kauffman, 2005).
2.5 Challenges facing Strategy Implementation in organizations
The importance of enabling sound “two-way” communications within organizations is
seen as fundamental to the effective implementation of strategy (Rapert et al., 2002), with
a particular emphasis on facilitating useful feedback and “bottom-up” messages (Otley,
1999). The process of creating an organizational balanced scorecard essentially
commences with a full strategic appraisal and the clear articulation of the organization’s
strategic vision and objectives (Kaplan and Norton, 1992; Atkinson and Brown, 2001),
this process can in itself can build consensus and engender learning which can be of
enormous value (Neely et al., 2000).
Successful strategy implementation, it is suggested, requires sound mechanisms for
directing activity and behavior of employees towards performance, Goold (1991),
especially including effective communication systems as well as appropriate strategic and
management controls. The balanced scorecard's four perspectives as manifested in
strategy maps provide “a level of granularity that improves clarity and focus” thereby
creating clear direction and, potentially, through the development and publishing of the
strategy map, facilitate understanding and coordination across the organization, Kaplan
and Norton's (2004, p. 10)
38
Through this process of definition and communication of core values throughout an
organisation, moreover, the Balanced Scorecard provides an effective “boundary” control
system (Mooraj et al., 1999). The process of building and utilizing the scorecard
provides an opportunity to identify priorities and reconcile different stakeholder demands
as well as enhancing strategic feedback and learning (Denton and White, 2000) thus also
enabling effective “diagnostic” control (Simons, 1994) through the monitoring of
financial and other “lag” indicators against pre-set targets (Mooraj et al., 1999).
In addition to substantially meeting Lynch and Cross (1995) necessary conditions, the
balanced scorecard appears to offer a range of additional attributes that may also support
successful strategy implementation. Pearce and Robinson (2003) argue that, while
structure provides overall framework for strategy implementation, it is not in itself
sufficient to ensure successful execution.
According to Bourgeois and Brodwin (1984), within the organizational structure,
individuals, groups and units are the mechanisms of organizational action, and the
effectiveness of their actions is a major determinant of successful implementation. In this
context, two basic factors encourage or discourage effective action-leadership and
culture. Two leadership issues of fundamental importance here are the role of the Chief
Executive Officer (CEO) and the assignment of key managers. One practical
consideration in making key managerial assignments when implementing strategy is
whether to emphasize current (or promotable) executives, or bring in new personnel. This
is obviously difficult, sensitive and a strategic issue (Hambrick and Cannella, 1989).
39
Pearce and Robinson (2003), continue to postulate that, culture is a set of important
assumptions (often unstated) that members of an organization share in common. These
shared assumptions (beliefs and values) among members of an organization set a pattern
for activities, opinions and actions within that firm. The important assumptions are
sufficiently central to the life of an organization so as to have a major impact on it.
Kotter and Leonard (1979) contents that without the right leadership; employees remain
skeptical of the vision for strategy and distrustful of management. The management was
likewise be frustrated and stymied by employee resistance. One major task of the
Manager is to implement strategy which entails overcoming resistance.
According to Bunker and Wakefield (2006) the reality of ongoing strategy is not news for
most leaders. Even so, few are prepared to lead in the context of significant, unrelenting
strategy. Often, strategy sets up leaders to struggle between managing the business and
addressing the needs of the people. Typically, it is the people side that loses out. If
leaders don’t establish an effective balance between business and people priorities they
can destabilize the organizational culture and erode trust, generating fear and skepticism.
40
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter details how the proposed study was carried out. It covered the design
adopted to conduct the study, how data was collected and eventual analysis of the data in
order to generate research findings for reporting.
3.2 Research Design
The study was carried out through a case study design where the unit of study was the
City Council of Nairobi to find out the challenges facing the implementation of strategies
adopted for effective revenue collection at the Nairobi city council. The design is most
appropriate when detailed, in-depth analysis for a single unit of study is desired.
Case study research design provides very focused and valuable insights to phenomena
that may otherwise be vaguely known or understood. The design enables the researcher
not only to establish factors explaining phenomena but also unearth underlying issues
(Kothari, 1990).
41
3.3 Target population and sample size
The study targeted the top managerial employees in the CCN who were comprised of ten
(10) managers drawn from various departments. They included the Human resource
Manager, Accounts Manager, ICT Manager, Legal Officer, Customer Relations Manager,
and Revenue collection Managers, Finance Managers, Procurement Managers, Education
Manager and Environment Manager.
These respondents were better placed in providing required data because they all play
leading roles in ensuring that they position the Nairobi City Council favorably within the
rapidly and unpredicted changing environment through instituting appropriate timely
responses.
3.4 Data Collection Method
The study made use of both primary and secondary data. Primary data was obtained from
managers at the city council of Nairobi using an interview guide. The interview guide
(Appendix II) was used to solicit data on the changes in the council’s environment and
the responses thereto.
The interview guide was administered through personal interviews which allowed for
further probing. The secondary data was obtained from the council’s documented
strategies and any other relevant information about the council. The data was obtained
through review of relevant documents, key among them the council’s strategic plan and
other relevant documentations.
42
3.5 Data Analysis
Both the primary and secondary data were qualitative in nature. Given this fact, content
analysis was used to analyze the data that was collected from the six managers at the
Nairobi City Council. According to Nachmias & Nachmias (1996), content analysis is a
technique for making inferences by systematically and objectively identifying specified
characteristics of data collected and inferences drawn from the data and then using the
same to relate trends.
The data obtained from the six respondents was extracted, a summary of the results
obtained, inferences drawn from the data and then this summary of the results and
conclusions prepared so as to compare to the literature review for any consistencies and
inconsistencies or to establish areas of agreement and disagreement. These comparisons
were then discussed in this research project.
43
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSIONS
4.1 Introduction
This chapter presents the result of the analysis of data collected through interviews
targeting ten (10) managers drawn from various departments. They included the Human
resource Manager, Accounts Manager, ICT Manager, Legal Officer, Customer Relations
Manager, and Revenue collection Managers, Finance Managers, Procurement Managers,
Education Manager and Environment Manager in the city council of Nairobi. The data
was analyzed using content analysis based on meanings and implications emanating from
respondents information and documented data.
4.2 Response Rate
The researcher booked for the appointment with the various respondents in the City
Council of Nairobi. From the targeted 10 respondents in the managerial position in the
CCN, six of them were available to undertake the interview and this made a response rate
of 60%.
44
4.3 The Role of Managers in Strategy Implementation Process
The interview guide sought response on the role of the managers in strategies
implementation process. From the responses received from the interviewees, it was clear
that the corporate objectives were entrenched in the strategic plan of the organization
where each departmental managers and heads had its objectives that had to be met.
Moreover, the study inquired on the managers’ roles in the council’s strategic
implementation process. The respondents cited that it involved the implementation of
organization strategy through the application of the management process to obtain the
desired results. Particularly, strategy implementation includes designing the
organization's structure, allocating resources, developing information and decision
process, and managing human resources, including such areas as the reward system,
approaches to leadership, and staffing.
All the departmental objectives were congruent with the overall council wide objectives.
The staff members are also constantly reminded of their objectives during meetings
carried out between managers and other staff members to review their performance
during and over a certain specific period of time.
The study also indicates that there is awareness and involvement as the counter response
measures strategy was being embraced by each of the respondents. HODs were involved
in formulation and implementation of the strategy. Management makes the necessary
moves to establish positions in different businesses and achieve an appropriate amount
and kind of diversification.
45
A key part of corporate strategy is making decisions on how many, what types, and
which specific lines of business the council should be in. This may involve deciding to
increase or decrease the amount and breadth of diversification. It may involve closing out
some strategies (lines of business), adding others, and/or changing emphasis among
strategies.
The council managers initiated actions to boost the combined performance of the
businesses the council has diversified into: This involved vigorously pursuing rapid-
growth strategies in the most promising strategies, keeping the other core revenue
collection businesses healthy, initiating turnaround efforts in weak-performing strategies
with promise, and dropping strategies that are no longer attractive or don't fit into the
corporation's overall plans.
They also involved supplying financial, managerial, and other resources, or acquiring
and/or merging other companies with an existing core missions in pursuing ways to
capture valuable cross-business strategic fits and turn them into competitive advantages
especially transferring and sharing related technology, procurement leverage, operating
facilities, distribution channels, and/or customers. Moreover, the council managers also
are in forefront in establishing investment priorities and moving more corporate resources
into the most attractive strategies.
4.4 Challenges Affecting the Implementation Process in the Council
The study further inquired on the various challenges facing the implementation of
strategies adopted by the city council of Nairobi for effective revenue collection. There
46
were various reasons cited such as ineffective direct and control use of the firm's
resources, mechanisms such as organizational structure, poor information systems,
ineffectual leadership styles, slow assignment of key managers, unplanned budgeting,
little or less employee rewards, and weak control systems.
The responsibility of the implementation of strategies was to the management which
includes board of governors and top management officials. The respondents were asked
to list most of the factors that they felt pose a challenge to strategy implementation
process for effective revenue collection their council.
4.5 Factors that Pose challenges to Strategy Implementation Process in the Council
Majority of respondents identified gaps in organization structure and rapid change in
Technology as the factors that highly ponds change to strategy implementation process
services. Need to concentrate on Core Activities, need to reduce operational cost and
need to free resources for other purposes followed with each.
The respondents further felt that the factors that moderately pond challenges to the choice
of what to strategy the council includes: need to improve institutional focus, ease of
activity control through adoption of new technology and need to improve efficiency and
reduce risks in revenue collection. Some respondents did not consider management style
and availability of human resource skills as important challenge factors that determines
strategy implementation process services.
All respondents did not consider Government Policy as an important factor to be
considered at all. With regard to any other factor posing challenge to strategy
47
implementation process at the council, the various attributes of the strategy consultants
which were considered as important includes professionalism, competence, quality of
service, contract term, credibility, cost and flexibility.
The study also revealed that some respondents did not consider certain factors as
important while selecting the external strategy consultants. These were: size of the
strategy consultants, qualification of the strategy consultants and strategy consultants’
flexibility. Majority of the respondent felt that it was not cost effective to handle some
activities services internally as the required skills were lacking and hiring them would
cost more that delegating them to a third party. The council therefore needs to improve on
technology and services quality so as to highly access world class capabilities.
4.6 How Strategy Implementation Challenges Affect the Implementation Process
The study inquired on how strategy implementation challenges affect the implementation
process of various areas in the council. On structure, the study revealed that structure
provides overall framework for strategy implementation, it is not in itself sufficient to
ensure successful execution. Within the organizational structure, individuals, groups and
units are the mechanisms of organizational action, and the effectiveness of their actions is
a major determinant of successful implementation. In this context, two basic factors
encourage or discourage effective action-leadership and culture.
On how strategy implementation challenges affect the implementation process on
Culture, the respondents cited that culture is a set of important assumptions (often
unstated) that members of an organization share in common. These shared assumptions
48
(beliefs and values) among members of an organization set a pattern for activities,
opinions and actions within that firm. On the area of Technology, the study revealed that
most departments of the Nairobi City Council have not been computerized.
49
Further, strategy implementation challenges were seen to affect leadership in that without
the right leadership; employees remained skeptical of the vision for strategy and
distrustful of management. The management was frustrated and stymied by employee
resistance. One major task of the Manager was to implement strategy which entailed
overcoming resistance. Most respondents did not term Legal/Regulatory factors as a
strategy implementation challenge at CCN since CCN derives its legal mandate from the
local government act (Cap 265) of the laws of Kenya amongst other acts of parliament
that augment its diverse core functions and priorities.
These priorities are contained in various policy and planning documents such as the
national development plans, poverty reduction strategy paper and Economic Recovery
Strategy (ERS) for wealth and employment creation in the medium term and Kenya’s
vision 2030. The study revealed that CCN faced competition in the industry from private
owned firms such as estate developers who create estates and hence private owned
services such as garbage collection, provision of water and sewerage services. These in
turn led to loss of revenue to CCN. The study found that CCN strategy implementation
was also affected by Customer needs and preferences.
Most respondents cited that strategy sets up leaders to struggle between managing the
business and addressing the needs of the people. Typically, it is the people side that loses
out. The study revealed that there were various implications of the challenges on the
council’s strategy implementation process. This had led to poor provision of services,
loss of revenue and lack of public trust especially on the timely delivery of services.
50
4.7 Basic Measures in the Council for Effective Strategy Implementation
In seeking to know the councils basic measures requirements for effective strategy
implementation for effective revenue collection, the researcher established that in order
for the council to effectively achieve effective strategy implementation for effective
revenue collection successfully , financial requirements are just as important.
Strategic management implementation techniques can be viewed as bottom-up, top-down
or collaborative processes. In the bottom-up approach, employees submit proposals to
their managers who, in turn, funnel the best ideas further up the organization. This is
often accomplished by a capital budgeting process. Proposals are assessed using financial
criteria such as return on investment or cost-benefit analysis. Cost underestimation and
benefit overestimation are major sources of error. The proposals that are approved form
the substance of a new strategy, all of which is done without a grand strategic design or a
strategic architect.
4.8 Requirements in the Council for Effective Strategy Implementation
The researcher further established that the council’s effective strategy implementation
was in a well-designed vision that allows for free ideological movement and interaction
of staff. Moreover, the researcher wanted to find out whether there was any particular
area frequently outsourced by the councils in effective strategy implementation. The
findings therefore indicated that Information Technology is currently being outsourced by
the council to a very great extent closely followed by training activities which is
outsourced to a great extent.
51
Facility management and policy management were found to be moderately outsourced as
one way of improving the efficiency strategy implementation of the councils formulated
strategies. Human resource (HR) services are outsourced to a small extent as the council
recruit for it however training of these newly recruits is outsourced to a moderate extent.
The study revealed that HR counter response measures has a great future potential as a
key management strategy in the organizations. This is because the council was able to
reduce their high wage costs and improve the management of payroll for internally
employed.
Moreover, the study findings revealed that there were mostly individual barriers to
strategy implementation such as too many and conflicting priorities, insufficient top team
functions, a top down management style, inter-functional conflicts, poor vertical
communication, and inadequate management development. This clearly pointed out that,
in its bid to strategy implementation efforts; the council is trying to develop new
organization capacities failed to get over these organizational hurdles: competence, co-
ordination, and commitment.
4.9 Discussion of the Results
The study aimed on establishing the various challenges facing the implementation of
strategies adopted by the city council of Nairobi for effective revenue collection. There
were various challenges cited such as ineffective direct and control of the council's
resources, mechanisms such as organizational structure, poor information systems,
ineffectual leadership styles, slow assignment of key managers, unplanned budgeting,
little or less employee rewards, and weak control systems.
52
The study inquired on how strategy implementation challenges affect the implementation
process of various areas in the council. On structure, the study revealed that structure
provides overall framework for strategy implementation, it is not in itself sufficient to
ensure successful execution. This is in line with the study by Waterman et al, 1980. He
established that the structure of the company often dictates the way it operates. Boyle,
(2007) suggests that the structure should be more flexible and power devolved by
empowering employees so as to eliminate middle management layers.
Strategy implementation challenges were seen to affect leadership in that without the
right leadership; employees remained skeptical of the vision for strategy and distrustful of
management. This is in line with Rapa & Kauffman’s (2005) study which revealed that
the most important thing when implementing a strategy is the top management’s
commitment to the strategic direction itself. Kotter and Leonard (1979) also found out
that without the right leadership, employees never have a clear vision of the strategy and
find it difficult to trust management.
The study established that it was not cost effective to handle some activities services
internally as the required skills were lacking and hiring them would cost more that
delegating them to a third party. This is in line with Eisenstat’s (1993) findings which
established that most companies trying to develop new organization capacities failed to
get over these organizational hurdles: competence, co-ordination, and commitment.
53
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
The study inquired on the role of Nairobi City Council in the council’s strategic
implementation process. The respondents cited that it involved the implementation of
organization strategy through the application of the management process to obtain the
desired results. Particularly, strategy implementation includes designing the
organization's structure, allocating resources, developing information and decision
process, and managing human resources, including such areas as the reward system,
approaches to leadership, and staffing.
5.2 Summary of the Results
The study inquired on the various challenges facing the implementation of strategies
adopted by the city council of Nairobi for effective revenue collection. There were
various reasons cited such as ineffective direct and control the use of the firm's resources,
mechanisms such as organizational structure, poor information systems, ineffectual
leadership styles, slow assignment of key managers, unplanned budgeting, little or less
employee rewards, and weak control systems. The responsibility of the implementation
of strategies was to the management which includes board of governors and top
management officials.
54
The study inquired on how strategy implementation challenges affect the implementation
process of various areas in the council. On structure, the study revealed that structure
provides overall framework for strategy implementation, it is not in itself sufficient to
ensure successful execution. Within the organizational structure, individuals, groups and
units are the mechanisms of organizational action, and the effectiveness of their actions is
a major determinant of successful implementation. In this context, two basic factors
encourage or discourage effective action-leadership and culture.
On how strategy implementation challenges affect the implementation process on
Culture, the respondents cited that culture is a set of important assumptions (often
unstated) that members of an organization share in common. These shared assumptions
(beliefs and values) among members of an organization set a pattern for activities,
opinions and actions within that firm. On the area of Technology, the study revealed that
most departments of the Kenyan local authorities have not computerized its revenue
collection function thus affecting its revenue strength.
Further, strategy implementation challenges were seen to affect leadership in that without
the right leadership; employees remained skeptical of the vision for strategy and
distrustful of management. The management likewise was frustrated and stymied by
employee resistance. One major task of the Manager was to implement strategy which
entailed overcoming resistance. Moreover, majority of respondents identified gaps in
organization structure and rapid change in Technology as the factors that highly pond
changes to strategy implementation process services.
55
Need to concentrate on core activities, need to reduce operational cost and need to free
resources for other purposes followed with each. The respondents further felt that the
factors that moderately pond challenges to the choice of what to strategy the council
includes: need to improve institutional focus, ease of activity control through adoption of
new technology, need to improve efficiency and need to reduce risks in revenue
collection. Some respondents did not consider management style and availability of
human resource skills as important challenge factors that determines strategy
implementation process services.
All respondents did not consider Government Policy as an important factor to be
considered at all. With regard to any other factor ponding challenge to strategy
implementation process at the council, the study revealed that most of the respondents
considered choice of external service strategy consultants as an important factor. The
various attributes of the strategy consultants which were considered as important includes
professionalism, competence, quality of service, contract term, credibility, cost and
flexibility.
The study also revealed that some respondents did not consider certain factors as
important while selecting the external strategy consultants. These were: size of the
strategy consultants, qualification of the strategy consultants and strategy consultants’
flexibility. Majority of the respondent felt that it was not cost effective to handle some
activities services internally as the required skills were lacking and hiring them would
cost more that delegating them to a third party. The council therefore needs to improve on
technology and services quality so as to highly access world class capabilities.
56
Respondents did not term Legal/Regulatory factors as a strategy implementation
challenge at CCN since CCN derives its legal mandate from the local government act
(Cap 265) of the laws of Kenya amongst other acts of parliament that augment its diverse
core functions and priorities. These priorities are contained in various policy and
planning documents such as the national development plans, poverty reduction strategy
paper and Economic Recovery Strategy (ERS) for wealth and employment creation
in the medium term and Kenya’s vision 2030.
The study revealed that CCN faced competition in the industry from private owned firms
such as estate developers who create estates and hence private owned services such as
garbage collection, provision of water and sewerage services. These in turn led to loss of
revenue to CCN. The study found that CCN strategy implementation was also affected by
Customer needs and preferences. Most respondents cited that strategy sets up leaders to
struggle between managing the business and addressing the needs of the people.
Typically, it is the people side that loses out. But if leaders don’t establish an effective
balance between business and people priorities they can destabilize the organizational
culture and erode trust, generating fear and skepticism among employees at a time when
a loyal, productive, and enthusiastic workforce is essential for success. The study
revealed that there were various implications of the challenges on the council’s strategy
implementation process. This had led to poor provision of services, loss of revenue and
lack of public trust especially on the timely delivery of services.
57
5.3 Conclusion
The study concludes that there were various challenges affecting CCN in its strategy
implementation process. These included Structure, culture, technology, leadership, lack
of focus, choice of external service strategy consultants, competition in the industry by
private companies, very high cost of operation, and substitute products/services.
The study concludes that the council had in a way been able to amend its strategy
implementation process as per the challenges. This was through application of all
management functions such as planning, controlling, organizing, motivating, leading,
directing, integrating, communicating, and innovation to the implementation process.
5.4 Recommendations
The study recommends that in order for CCN to be able to effectively implement their
strategies, there is need to have an organized organizational structure, improved
information systems, better leadership styles, timely assignment of key managers,
effective budgeting and offer rewards, and control systems.
The study also recommends that the council appoints a small number of professional staff
but effective instead of having a big pool of people who may not be in a position to
deliver on the strategy and also understand the importance of financial performance by
means of revenue collection. The recruit of some employees can be outsourced to
professional recruiters.
58
Finally, it would be important for the Nairobi City Council to set an example to other
councils by effectively marketing their core revenue streams, especially te ones they have
a monopoly over like property rates. Property in Nairobi can only pay property rates to
the Nairobi City Council.
5.5 Limitation of the Study
The research met with various challenges when conducting the research that included the
fact that the council ordinarily do not want to give information due to client
confidentiality. In addition, some of the interviewees would not find the subject to be of
interest. Additionally, some respondents would not want to give the information as they
considered it of competitive importance.
The respondents being normally very busy people in management may not have found a
lot of time to be interviewed. Since the research was conducted via open-ended
interviews, a large amount of time was needed to collect information from the
respondents. Time limitation made it impractical to include more respondents in the
study.
This study was also limited by other factors in that some respondents may have been
biased or dishonest in their answers. More respondents would have been essential to
increase the representation of the city council of Nairobi team in this study and allowed
for better check of consistency of the information given. However, the researcher did
look for contradictions in the information given and no inconsistency were found.
59
5.6 Suggestions for Further Research
Challenges to effective strategy implementation research areas are widely embraced in
the developing countries such a Kenya. In Kenya, it has gained acceptance mainly in the
private organizations, however government organizations are also incorporating it as a
key management strategy though at a sluggish pace. Given that this study only covered
challenges that affect Strategy implementation Process in the Nairobi City Council for
effective revenue collection, studies need to be done on challenges for all the other
councils.
There is therefore room for a similar study to cover all the council’s effective strategy
implementation in the major towns in Kenya. This is timely, given the today’s rapid
technology advances and the increased emerging of competition on organizations in the
country and the world at large. The researcher also suggests further research on revenue
management and strategies that could be employed in so doing since revenue can be
collected to a maximum level but be mismanaged due to other factors that the study did
not consider.
5.7 Implication on Theory, Policy and Practice
The study reveals that for strategy to be effectively implemented, the stakeholders have to
also see the fruit of this organisation. Structure balances the need for specialization with
need for integration. It provides a formal means of decentralizing and centralizing
organizational and control needs with the strategy, as supported by stakeholder theory
with the assumption that value is necessarily and explicitly a part of doing business.
60
The study findings posts the understanding that an organization’s clear policy execution
must address the intangibles of cross functional integration, reward systems, and cultures
as well as the tangibles captured in most strategic planning documents. This implies that,
for many firms, false starts, delays and confusion characterize implementation.
Clear stipulated practices are articulated in two core questions; first, it asks, what is the
purpose of the firm? This encourages managers to articulate the shared sense of the value
they create, what brings its core stakeholders together. This propels the firm forward and
allows it to generate outstanding performance, determined both in terms of its purpose
and market place financial metrics .Secondly, practices holds what responsibility does
management have to stakeholders, hence pushes managers to articulate how they want to
do the business. Specifically the kind of relationships they want and need to create with
their stakeholders to deliver on their purpose.
This implies that many firms have to develop and run their businesses in terms highly
consistent within this line. On practice, the study findings ask managers to articulate the
shared sense of the value they create and what brings its core stakeholders together. It
also pushes managers to be clear about how they want to do business, specifically what
kinds of relationships they want and need to create with stakeholders to deliver on their
purpose.
61
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APPENDICES
APPENDIX I: Cover Letter
LORRAINE KAGEHA,
University of Nairobi,
P.O BOX, 30197
Nairobi.
June 2011
Dear Sir/Madam,
RE: DATA COLLECTION
I am a postgraduate student at University of Nairobi undertaking a Master of Business
Administration degree Program majoring in Strategic Management. One of my academic
outputs before graduating is a thesis and for this I have chosen the research topic
“Challenges Facing the Implementation of Strategies adopted by the City Council of
Nairobi for Effective Revenue Collection”.
You have been selected to form part of the study. This is to kindly request you to assist
me collect the data by responding to the interview guide. The information you provide
will be used strictly for academic purposes and will be treated with utmost confidence. A
copy of the final report was available to you upon request. Your assistance will be highly
appreciated.
Yours Sincerely,
LORRAINE KAGEHA
74
APPENDIX II: Interview Guide
1. Interviewee’s managerial position:______
2. Years with the Council:________________
3. Years in the current position: _____________________
4. What is your role in the council’s strategic implementation process?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………
5. What are the challenges facing the implementation of strategies adopted by the
city council of Nairobi for effective revenue collection? Who is responsible?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
6. What are the factors that affect the implementation process in the council?
Explain.
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
75
7. What requirements should the council put in place for effective strategy
implementation for effective revenue collection?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
8. For each of the challenges mentioned in (6) above, how has the implementation
process been affected?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
9. How has the council been able to amend its strategy implementation process as per
the challenges explained in (8) above?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
10. Overall, do you think the council has successfully implemented its strategy? How?
Explain?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………